United States Geological Survey Reports Increases in Both Domestic Consumption and Prices Paid for Graphite
LAS VEGAS, NV, Jan 18, 2013 (MARKETWIRE via COMTEX) --
USA GRAPHITE INC. (OTCQB: USGT) (or "the Company") is pleased to
share with its shareholders the 2012 United States Geological
Survey's (USGS) report on graphite.
The USGS report, released earlier this week, reports "Although
natural graphite was not produced in the United States in 2011,
approximately 90 U.S. firms, primarily in the Northeastern and Great
Lakes regions, used it for a wide variety of applications. The major
uses of natural graphite in 2011 were estimated to be refractory
applications and crucibles combined, 33%; foundry operations and
steelmaking combined, 26%; brake linings, 7%; batteries and
lubricants combined, 5%; and other applications, 29%."
The USGS has also reported a gross increase of more than 7% on
domestic imports of graphite for consumption from 2010 to 2011.
During this period, prices paid for flake graphite, lump and chip
graphite, and amorphous graphite have all increased as well.
The USGS reports: (Data in thousand metric tons unless otherwise
Salient Statistics--United States: 2007 2008 2009 2010 2011e
Production, mine -- -- -- -- --
Imports for consumption 59 58 33 65 70
Exports 16 8 11 6 7
Consumption, apparent 43 50 22 60 63
Price, imports (average dollars per ton
at foreign ports):
Flake 499 753 694 720 1,170
Lump and chip (Sri Lankan) 2,219 2,550 1,410 1,700 2,070
Amorphous 150 203 249 257 299
Net import reliance as a percentage of
apparent consumption 100 100 100 100 100
Import Sources (2007-10): China, 51%; Mexico, 20%; Canada, 19%;
Brazil, 6%; and other, 4%.
Events, Trends, and Issues: Worldwide demand for graphite slowly
began to increase during the last half of 2009 and continued
increasing steadily throughout 2010 and into 2011. This increase
resulted from the improvement of global economic conditions and its
impact on industries that use graphite. Principal import sources of
natural graphite were, in descending order of tonnage, China, Mexico,
Canada, Brazil, and Madagascar, which combined accounted for 99% of
the tonnage and 92% of the value of total imports. Mexico provided
all the amorphous graphite, and Sri Lanka provided all the lump and
chippy dust variety. China, Canada, and Brazil were, in descending
order of tonnage, the major suppliers of crystalline flake and flake
During 2011, China produced the majority of the world's graphite, and
China's graphite production is expected to continue to increase.
World Resources: Domestic resources of graphite are relatively small,
but the rest of the world's inferred resources exceed 800 million
tons of recoverable graphite.
Advances in thermal technology and acid-leaching techniques that
enable the production of higher purity graphite powders are likely to
lead to development of new applications for graphite in
high-technology fields. Such innovative refining techniques have
enabled the use of improved graphite in carbon-graphite composites,
electronics, foils, friction materials, and special lubricant
applications. Flexible graphite product lines, such as graphoil (a
thin graphite cloth), are likely to be the fastest growing market.
Large-scale fuel-cell applications are being developed that could
consume as much graphite as all other uses combined.
Mr. Wayne Y. Yamamoto, President and CEO of USA Graphite, comments;
"The 2012 USGS report reinforces the Company's position on the
graphite market. Demand for graphite is growing exponentially as
technologies requiring graphite and by-products of graphite are
rapidly increasing. Domestic consumption of graphite is reported to
be at a five year high. Further, the USA continues to pay record
prices for 100% of its consumption, sending fortunes to China, Mexico
and Canada. USA Graphite is committed to sourcing multiple large
tonnage supplies of graphite in America for the American market."
-- Graphite is used in refractories -- used to line high-temperature
equipment; pencils; lithium-ion batteries -- used in consumer
electronics and electric vehicles, including the Nissan Leaf, Tesla
Model S and others; fuel cells; and Pebble Bed nuclear reactors. It is
used in foundries, lubricants and brake linings.
-- Graphite is also used to produce graphene, a tightly packed single
layer of carbon atoms that can be used to make inexpensive solar
panels, powerful transistors, and even a wafer-thin tablet that could
be the next-generation iPad* or iPod*.
-- Graphene, extremely light and strong, has been called the world's next
-- The closure of graphite mines in China, which produces 75% of the
world's graphite, has resulted in a fall in global graphite production
to 1.3 million tonnes per annum in 2011. Like rare earths, China is
restricting the export of graphite to protect its own domestic
industries. The second largest producer is India, followed by Brazil,
North Korea, Austria and Canada.
*trademarks of Apple Inc.
About USA Graphite:
USA Graphite is a publicly traded US exploration company focused on
the acquisition, exploration and development of world-class graphite
properties in North America. USA Graphite intends to become a
domestic (US) graphite supplier. The USGS has reported that the USA
has been a 100% net importer of graphite over the last 5 years,
sending billions of dollars out of America. USA Graphite has holdings
in Nevada, offering considerable potential for the discovery and
development of large flake, high-grade graphite, whereby
mineralization is exposed at surface and clearly evident at economic
depths. For additional information please visit
"Safe Harbor" Statement:
Under The Private Securities Litigation Reform Act of 1995: The
statements in the press release that relate to the Company's
expectations with regard to the future impact on the Company's
results from new products in development are forward-looking
statements, within the meaning of the Private Securities Litigation
Reform Act of 1995. Notice Regarding Forward Looking Statements -This
press release includes forward-looking statements that involve a
number of risks and uncertainties, including the success of the
programs it is commercializing and developing. Further, the risks
involve the ability of the Company to raise capital to fund its
operations and the capital requirements for the development and
marketing of its products. Investors are encouraged to review the
risk factors listed or described from time to time in the Company's
filings (10K, 10Qs, S-1 and others) with the Securities and Exchange
USA Graphite Inc.
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SOURCE: USA Graphite Inc.
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